TEST 2 Flashcards
Lego: Why did they almost go bankrupt?
Because they tried to shy away from the original brick model
Lego: Why was their innovation story so unique?
Because they started out making wooden toys and then went into plastic bricks
Corporate Startup: Innovation Thesis
Innovation must be part of and aligned with the overall strategic goals of the company
Innovation Thesis
Clearly sees a company’s view of the future and the strategic objectives of innovation
What are the 4 platforms of innovation radar?
Offerings (What), Presence (Where), Customers (Who), Processes (How)
What are the 10 types of innovation?
Profit Model, Network, Structure, Process, Product Performance, Product System, Service, Channel, Brand, Customer Engagement
What is a Profit Model?
The way in which you make money
What is Structure?
Alignment of your talent and assets
What is Network?
Connections with others to create value
What is Process?
Signature or superior methods for doing your work
What is Product Performance?
Distinguishing features and functionality
What is Service?
Support and enhancements that surround your offerings
What is Product System?
Complementary products and services
What is Channel?
How your offerings are delivered to customers and users
What is a Brand?
Representation of your offerings and business
What is Customer Engagement?
Distinctive interactions you foster
What are the Seven Sources of Innovation?
Knowledge, Unexpected, Demography, Process Needs, Perception, Incongruities, Industry and Market
What are the three topics in Innovation Ambition Matrix?
Core, Adjacent, Transformational
What is Core Innovation?
Optimizing existing products for existing customers
What is Adjacent Innovation?
Expanding from existing business into “new to the company” business
What is Transformational Innovation?
Developing breakthroughs and inventing things for markets that don’t yet exist?
What is an example of Transformational Innovation?
iTunes
What is an example of Adjacent Innovation?
Swifter
What is an example of Core Innovation?
100 Calories Packs
What is the Golden Ratio?
70/20/10 vs 10/20/70
Higher share performance vs distribution of returns
What is the purpose of managing your innovation portfolio?
- Gives managers a framework for surveying all the initiatives the business has underway
- Gives managers a way to discuss the right overall ambition for the company’s innovation portfolio
What is open innovation?
Pulls innovation from both internal and external sources
What is an example of open innovation concept?
Lego, NASA, P&G
What is the Innovation Readiness Gap?
Framework allows companies to access their relative strength on 10 essential factors related to their processes and capabilities
What is the PND evolution of the value chain in Garmin?
- Shift from static maps to dynamic maps
- Updates/ Expansion of satellite systems
What are PND Industry challenges?
Falling Prices, Installation of dashboard systems, Smartphones with mapping capabilities
What is the innovation talent wheel?
Illustrates the 10 key traits of effective innovation teams
What are the innovation team characteristics?
Networking, Orchestrating, Motivating, Selling, Generating, Uncovering, Pioneering, Absorbing, Deciding, Tabulating
What are the EBO Criteria?
Strategic alignment, Cross-IBM leverage, New source of customer value, $1B plus revenge potential, Market Leadership, Sustained Profit
How many Horizons are in the Horizons of Growth Model?
3
What is Horizon Model 1?
Existing Business Model: Process Innovation
What is Horizon Model 2?
New Opportunities via Business Model Innovation
What is Horizon Model 3?
New/Disruptive Business Model
What kind of business plan is Horizon 1?
Known
What kind of business plan is Horizon 2?
Partially known
What kind of business plan is Horizon 3?
Unknown
What was CNN+?
App that was launched as an add on of CNN
What happened to CNN+?
When launched, it did not do as well as it hoped, newly merged Warner Brothers Discovery begins public trading
What is the Discovery Driven Planning Process?
Precursor to Lean startup
What are the 5 disciplines of the Discovery Driven Planning Process?
- Definition of success for the plan or initiative, including a “reverse” income statement
- Benchmarking against market and competitive parameters
- Specification of operational requirements
- Documentation of assumptions
- Specifications of key checkpoints
How did Ford do their Structural Reorganization?
Completely changed, said legacy organization had been holding them back.
What are some strategic considerations?
Timeline, Customer, Cost/Possible efficiencies, Brand Leverage
